Founder Assessment Framework

A framework for evaluating founders when considering investment opportunities, focusing on key traits and characteristics that indicate potential success.

Core Assessment Criteria

• Knowledge Depth

  • Must demonstrate deep understanding of their space
  • Should have thoughtful answers when probed
  • Expected to know significantly more about their subject than others
  • Ability to explain complex concepts clearly

• Execution vs Talk

  • Must be an executor, not just a talker
  • Track record of completing projects
  • Focused dedication to the business
  • Avoid founders who split focus across multiple ventures (podcasts, speaking, etc.)

• Reality Assessment

  • Must have a credible view of reality
  • Ability to identify and acknowledge main risks
  • Clear understanding of business challenges
  • Appropriate risk assessment capabilities
  • Not being delusionally optimistic

• Track Record

  • Past history of interesting and unique achievements
  • Pattern of success in new domains
  • Ability to become a leader in new spaces quickly
  • Previous wins are positive but not mandatory

Investment Return Requirements

• Target companies must have potential for:
  • $100M+ annual revenue
  • $1B+ valuation potential
  • 7-10 year investment horizon
  • Significant return multiple to justify risk and illiquidity

Red Flags

• Lack of clarity in thinking
• Unable to articulate clear vision
• History of quitting projects
• Dismissive of legitimate risks
• Split focus across multiple ventures
• Unrealistic market assessment

Decision Making Process

• Look for "intangible signals"
• Assess confidence and certainty in communication
• Probe for depth of thought and preparation
• Evaluate clarity of vision and execution plan
• Consider potential market size and scalability
• Focus on founder's ability to achieve necessary scale